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March 24, 2005
Sandisk Revisited Thur., March 24, 2005, 11:58 AM
Five weeks ago, I wrote a positive story about Sandisk (NDQ: SNDK) and Lexar Media (NDQ: LEXR), but happened to recommend selling half your position in SNDK in order to buy LEXR. I like Sandisk long-term but I wrote that there was too big a risk to stay 100 percent in the SNDK stock because the Lexar lawsuit against Toshiba just might hurt Sandisk a bit if Lexar wins.
Well, Lexar won big time. One look at the charts tells you I had this one figured out right.
After the close today the announcement was made:
Total Damages of $465 Million, The Largest IP Verdict in California History
Fremont, CA, March 24, 2005 -- "The day after finding Toshiba Corporation (JP:6502) and Toshiba America Electronic Components, Inc. (PNK:TOSBF.PK) liable for $381.4 million in damages for breach of fiduciary duty and theft of trade secrets in Lexar Media, Inc. v. Toshiba Corporation, a San Jose jury awarded Lexar Media, Inc. (Nasdaq:LEXR) an additional $84 million in punitive damages. The total awarded to Lexar in the case now totals $465.4 million, which is believed to be the largest IP verdict in California history and the third largest IP verdict in the United States."
Most often, I am strongly against ridiculously high jury awards in the U.S., but this one is precedent setting, and I think firmly positions the proprietary rights of small technology companies world wide.
Posted by Posted by Bill Cara on March 24, 2005 11:59:39 AM | Category: 45 Info Technology , Flash Memory